Uncertainty hits Queensland high-tech sector

Sylvia Pennington

For Queensland's high-tech sector, 2013 has begun as a year of uncertainty and cutbacks, as the state slashes research funding and delays the release of an audit report the local industry hopes will signal the start of an ICT spending spree.

Commissioned by incoming ICT Minister Ros Bates last May, the $5.2 million whole-of-government audit was to provide a picture of how ICT was being used across the state's 19 departments and where savings could be made.

The report was originally due on October 30, but three months on, Bates has refused to provide details of when it will go before cabinet or be made public.

At the same time, the state's commitment to the ICT sector has been called into question, following the axing of $3 million in annual funding to the national high-tech research centre NICTA in late December.

Director of NICTA's Queensland operations Simon Kaplan said state funding was matched by federal investment and the axing had triggered a $1.5 million cut from Canberra, leaving the lab with just $1.5 million in public funding.

The cut has meant a reduction in numbers at NICTA's Brisbane lab from 38 to 16 full-time positions. Staff had been redeployed to other roles within NICTA or found places in the private sector and a number of locally based projects had been canned, Kaplan said.

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The move puts Queensland at odds with the other states, all of which had upped their investment in NICTA in the past 18 months, according to Kaplan.

“We're hopeful in the long term, as the financial position of the state improves, more funding might emerge,” he said.

Industry figures are frustrated with the government's tardiness in getting its house in order, even as it takes the red pen to initiatives that promise to boost the high-tech capital of a state better known for sun, surf and the minerals boom.

One senior source said local suppliers were frustrated with the protracted review process and wanted to see a plan shorter on talk and longer on action.

“We are keen to see [the report] released as soon as possible so we can look to address the findings and get Queensland firing again,” he told IT Pro.

Another developer questioned the government's commitment to building a digital economy, comparing the paucity of state initiatives with the Brisbane City Council's efforts to encourage local businesses to enter the digital space.

Maree Adshead, former chairwoman of the Australian Information Industries Association's Queensland branch, said the minister had told industry figures the audit report would go to cabinet in late January.

“She advised that the findings revealed significant investment is required in order to address the projects identified in the report,” Adshead said.

“She is calling upon the ICT industry to assist the government to find smart and innovative ways to solve these problems, as there is not near enough in the budget to find the solutions via traditional methods.”

The government needed to 'bring it on', Adshead said.

“The ICT audit is done now – can't we just move on and get started?”

A spokeswoman for ICT Minister Bates said she could not comment on the audit until it had been before cabinet.